Flexsteel Industries (NASDAQ: PRPL) and Purple Innovation (NASDAQ:PRPL) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.

Earnings and Valuation

This table compares Flexsteel Industries and Purple Innovation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Flexsteel Industries $489.18 million 0.53 $17.66 million N/A N/A
Purple Innovation N/A N/A $800,000.00 N/A N/A

Flexsteel Industries has higher revenue and earnings than Purple Innovation.

Institutional and Insider Ownership

63.9% of Flexsteel Industries shares are owned by institutional investors. Comparatively, 12.7% of Purple Innovation shares are owned by institutional investors. 6.0% of Flexsteel Industries shares are owned by company insiders. Comparatively, 65.8% of Purple Innovation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Flexsteel Industries and Purple Innovation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Flexsteel Industries 0 0 0 0 N/A
Purple Innovation 0 0 1 0 3.00

Purple Innovation has a consensus target price of $8.00, suggesting a potential upside of 43.37%. Given Purple Innovation’s higher probable upside, analysts plainly believe Purple Innovation is more favorable than Flexsteel Industries.

Profitability

This table compares Flexsteel Industries and Purple Innovation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Flexsteel Industries 4.15% 7.48% 6.33%
Purple Innovation N/A -36.07% -3.06%

Dividends

Flexsteel Industries pays an annual dividend of $0.88 per share and has a dividend yield of 2.7%. Purple Innovation does not pay a dividend. Flexsteel Industries has increased its dividend for 8 consecutive years.

Volatility and Risk

Flexsteel Industries has a beta of 1.8, indicating that its share price is 80% more volatile than the S&P 500. Comparatively, Purple Innovation has a beta of -0.59, indicating that its share price is 159% less volatile than the S&P 500.

Summary

Flexsteel Industries beats Purple Innovation on 9 of the 12 factors compared between the two stocks.

About Flexsteel Industries

Flexsteel Industries, Inc., together with its subsidiaries, manufactures, imports, and markets residential and contract upholstered and wood furniture products in the United States. It offers sofas, loveseats, chairs, reclining and rocker-reclining chairs, swivel rockers, sofa beds, convertible bedding units, occasional tables, desks, dining tables and chairs, and bedroom furniture for use in home, office, hotel, healthcare, and other commercial applications. The company distributes its products through its sales force and independent representatives. Flexsteel Industries, Inc. was founded in 1929 and is headquartered in Dubuque, Iowa.

About Purple Innovation

Purple Innovation, Inc. designs and manufactures mattresses, pillows, and cushions. The company markets and sells its products through direct-to-consumer and retail channels. Purple Innovation, Inc. was founded in 2010 and is headquartered in Alpine, Utah.

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